“It shows there are more people in employment, less poverty, and the support we are giving to people is working,

“We work closely with local employers and providers in order to have a joined up approach, and we aim to be a ‘one stop shop’ for people who are looking for work.”

The area’s MP, Victoria Atkins, said she was delighted with the figures and stressed they showed the Government’s economic policy is working.

She also pointed to figures which showed a near 50 per cent reduction in the number of claimants compared with five years ago.

Ms Atkins said that since 2010, the number of people claiming the allowance had falled by 735 - a 48 per cent reduction.

She added: “I am delighted that over the last five years the number of people relying on Jobseeker’s Allowance has fallen. This is a testament to our long term economic plan which is providing a more secure future for families in Louth and Horncastle.

“It is good to see this positive news reflected nationally. The UK Claimant Count is now at its lowest rate since 1975. Wage growth is at its highest in real terms since October 2007.

“As a government for working people, we’re committed to go further as we work towards a Britain of full employment, which offers working people security at every stage of their life.”